Five !!!!!

I promised "jjp" an explanation of why I think that, although the first HUI fractal clearly moved to lower lows for the correction at this point, this time around new highs might be in the cards, instead. Make no mistake- I certainly understand the potential for slightly new lows in the HUI at this time, but I am holding long positions feeling confident that even such a low would soon usher in a heck of a run to my 468ish target. The move would just be delayed for 30 to 60 days. This investing is all about risk/ reward. I simply want to catch the big up-moves and do not want to risk being left at the station. Such is the advantage of trading/ investing with an intermediate to long-term perspective.

Below, I have slightly adjusted the Bollinger Band charts of the HUI that I had previously used in an editorial, called "Four!" Though the numbers on these charts were in no way used for Elliot Wave purposes- I thought it only fitting to call the next potential HUI move, "Five!"

As I have said, if this fractal plays out exactly as the first fractal did, then we have slightly lower lows coming for the correction at this time. Such new lows would usher in a big run to around 468ish per my work, delaying the move up by, say, 30 to 60 days. Yet, it seems to me that the current fractal saw a "B" move to 401 to my "angled line resistance", and I believe that shows clearly in the TA indicators at this time. A "B" move to new high is should be very bullish.

Comparing the charts of the 2002 Bollinger Band (BB) fractal to the current one, what do we see? We see in the 2002 fractal that an "A, B, C" correction occurred, taking price down to the lower BB. From that area the HUI went on a run breaking the "angled line resistance" as I have shown in other charts. In the current 2006 chart, I believe we see an "A, B, C" correction, but with the "B" going to new highs. I have shown that a similar coming top might be to around 468ish.

If we use the 2002 HUI BB chart, below, and do a simple count; we find that from the low to the (4)high is 12 price lines. Then, the next run (to 5) is 10 price lines from the bottom. When we look at the current 2006 HUI BB chart, it ran 12 price lines from the low of 165 to the "B" top at 401. Since the low at the lower BB was 270, if we add the next run of 10 price lines....10 x 20 = 200. 200 + 270 = 470 ~ 468ish. I love symmetry in a chart and in price moves.

So, we could see new lows, but I like the possibility of a big run starting soon and going to 468ish in early October. We have hit the lower BB on a "C" move down that included a higher "B", potentially. In both charts the TA indicators are very, very similar, which allows for an up-move coming very soon. The recent "B" move higher was necessitated to take price up to the "angled resistance line", IMO. The symmetry of both fractals at this time is optimum. Fractal comparisons of the HUI to Bonds shows very close similarities at this time, also. Barrick's want to take out NG suggests just how undervalued all stocks with great reserves are coveted by the larger producers. Heck! Why go through all of the expense and work of developing your own reserves when these PM stocks are sitting there so cheaply? Does anyone remember the rumor of GSS being taken out? Something weird is going on with that chart pattern, IMO. If GSS breaks out- Katie bar the door! Heavy short positions will just..........implode?

Again, I'd like to thank all of the posters at the Gold-Eagle Forum for their daily input. This thank you is especially extended to TQ and to Grininbarrett. Special thanks go to Dr. Vronsky and Westerman for creating the Gold-Eagle site and for editing my work. A very special "Congratulations" go out to Dr. Vronsky and Westerman after Gold-Eagle saw its hit counter ring up 238 million this last week.

The Gold-Eagle Forum can be linked at www.gold-eagle.com/cgi-bin/gn/get/forum.html

Thanks also go out to CaptainHook and David Petch of TreasureChests since I have learned so much from them. They can be found at www.treasurechests.info/index.php

There are many great editorials that can be found on the Gold-Eagle site at the following link. www.gold-eagle.com/research/petchndx.html

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